Stocks popped higher today at open and never looked back! Buyers were rushing back into the beaten down tech stocks. The bounce was broad-based, although short-covering rendered the oversold sectors flying. Chinese internet stocks, especially, saw a really strong day! SINA vaulted almost +20%, trading as high as $92.9 from yesterday's $77.62 close! Other stocks in the same sector were up as well: BIDU +7.97%, SOHU +6.2%, QIHU +10.69%.
PCLN, which has fallen from $520 to almost touching $450 in just 2 weeks, popped +6.28%, and was up over $30 intraday! Its weekly call options soared more than +1000%!! GOOG bounced a relatively muted +1.74%. AMZN gained +3.47%. OPEN climbed +3.81%.
The Dow was up +109.63 points; SPX added +17.16 points; Nasdaq jumped +57.6 points (a whopping +2.19%):
FDN (internet) jumped +3.09%. XME (metals and mining) gained +3.64% while GDX (gold miners) added +3.37%. XLE (energy) advanced +1.99%. XLF (financials) rose +1.41%. FXI (Chinese ADRs) rebounded +1.55%.
SPX added +17.16 points to close at 1295.52. Its 10-day MA and MACD turned up.
Nasdaq jumped +57.6 points to close at 2687.26. It closed above 2675, which was an important support level that it broken through last week. Its MACD went higher.
This was a really powerful bounce today. VIX fell back, but, still closed above 18. With the dramatic fall in the last 3 weeks, the market is now far more volatile, and, we could see big moves like this in either direction in the near future. This afternoon, Greek PM won a symbolic confidence vote, which was much expected by the global markets. Tomorrow, we'll hear from the Fed and its latest rate decisions. The market can now begin to draw a bottom with support between 1250-1260. The immediate resistance is once again between 1300-1310. With such a strong bounce today, the market will likely need a breather tomorrow.
Good night and HappyTrading! ™